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What are the Real Estate Trends of Canada in 2022?

The Canadian real estate market has had recent shifts, which has got several companies to re-develop their strategies for 2022. Despite showing remarkable optimism about their prospects, they are paying close attention to several transformative real estate trends and forces, most likely the rising competition and costs and the changing work culture; environmental, social and governance (ESG).  In response to these pressures, including relative concerns pertaining to housing affordability, real estate companies have to churn out creative solutions to tackle the challenges that lie ahead in the future. If you are looking for Condos for Sale Whitby check now.

What are the Changing Real Estate Trends in the Canadian Market? 

1. Competition and Cost 

While the outlook for many asset classes is promising, the rising real estate trends of increasing land prices and key supplies are the key factors contributing to cost pressures, which in turn affect investment, development, affordability and rates of return. There is further an added pressure to the challenge of  fierce competition for business and development opportunities, which is increasing day in and out. The continued rise of the Canadian housing market has led an interviewee to express concern over the cautious investment decisions in the changing environment. 

2. ESG Performance 

Several industry experts have stated their opinion over ESG performance becoming a dire necessity for all the Canadian real estate firms. This is one of the new and significant real estate trends, which has different ideals for private and institutional participants. For institutional investors, ESG matters are becoming a key criterion for investment decisions, while for the private ones, a return is needed to justify the additional upfront costs. In addition to addressing key environmental issues pertaining to climate change and sustainability, experts have shown preference towards supporting affordable housing as it is a significant key for ESG performance. In short, whether it's about securing low cost finance, improving efficiency, attracting premium rentals or reducing risk, ESG performance is a significant factor towards value creation over the long term. 

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3. Workspace Culture 

Over the years, especially with the advent of the global Covid-19 pandemic, there has been a major shift in the workspace culture throughout the Canadian real estate market. While industry experts have different views on the persistence of these changes and what the future of work will ultimately look like, there is no doubt that there will be minimal differences in the workspace culture from what it was last year. On an overall basis, this will have exponentially impacted business decisions pertaining to the real estate users and key asset classes. The top real estate trends in the market include changes in migration patterns, office landscape and a greater focus on mixed-user communities. In the residential market, factors including growing savings, low interest rates and a desire for better living conditions have paved the way for an increasing demand for housing, posing the challenge to the affordability of the market. 

How Can Companies Navigate These Changing Real Estate Trends? 

In order to adapt to the relative trends in the Canadian real estate market, the companies have to embark on a transformation strategy with the primary focus on introducing innovation, lucrative investment plans having prospects of high returns and managing costs. Some of the key elements to the transformation strategy for successfully navigating the real estate trends must include: 

1. Digitisation:

Digitisation or Digital transformation is an important strategy towards creating services which clients seek and improving efficiency of the same. The key areas where a real estate firm should invest their funding and workforce include digital operations, advanced technology adoption and enhanced data analytics skills. 

2. Workforce Expansion:

As the market undergoes a crucial transformation, it becomes necessary on part of the companies to have a diversified bunch of workforce, which forms an ideal mixture of talent and skills. Having a dynamic mix of people mastering differing skills will not only drive sales but also contribute towards building a positive and unified work culture. 

3. Portfolio Optimization:

The rapidly changing real estate trends in the Canadian housing market has resulted into a dire necessity for all companies to rework on their investment portfolios and review their strategies for the upcoming future. There is an enlarging scope of optimizing a company's portfolio, most common ones being reviewing OTC transactions and smaller payouts. 

4. Digital Security:

Besides accelerating digitization, the real estate companies should ensure digital security from potential cyber risks. Having a customized line of security not only helps keep your data safe, but also act as a guarantee to your prospects that your operations are modeled by a safe and secured network. 

Summing it up:  

The changing real estate trends in the Canadian housing market is an inevitable factor which has been there since time immemorial. The focus of this report is to provide you a detailed overview of the relative shifts in the market, hence enabling the scope for better personal judgements.